Monday, May 27, 2013

JOBST- trading at demanding valuation

Result Update

For QE31/3/2013, JOBST's net profit increased by 3% q-o-q or 48% y-o-y to RM15.4 million while revenue increased by 19% q-o-q or 14% y-o-y to RM43.2 million.  Revenue increased q-o-q due to higher sales from online recruitment services due to seasonality factors. Pre-tax profit rose by 21.5% q-o-q mainly due to the impact of higher sales from online  recruitment services, offset by the significant one-off item in the immediate preceding quarter (QE31/12/2012) such as the reversal of impairment loss on investment in an associate.

Table: JOBST's last 8 quarterly results

 Chart 1: JOBST's last 28 quarterly results


JOBST (closed at RM3.65 on May 23) is now trading at a PE of 18.3 times (based on last 4 quarters' EPS of 19.9 sen). At this multiple, JOBST is deemed fully valued.

Technical Outlook

JOBST had a sharp rally over the past 5 months. I expect the share price to consolidate at RM3.50-3.60 for a while.

Chart 2: JOBST's weekly chart as at Mar 23, 2013 (Source: Quickcharts)


Based on improved financial performance & positive technical outlook, JOBST is a good stock to hold for long-term investment. However, its valuation is a bit stretched and this may lead to price consolidation for the weeks ahead.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, JOBST.

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